Last month, Congress passed the Inflation Reduction Act, representing the largest investment in clean energy sources in U.S. history. Though the bill is entitled “Inflation Reduction Act,” it's really a “climate change bill with a side helping of health reform,” as New York Times Columnist Paul Krugman describes. The bill, among other things, contains $369 billion in funding for clean energy and electric vehicle tax breaks, domestic manufacturing of batteries and solar panels, and pollution reduction.
If the bill’s policies work as intended, it would accelerate U.S. emission cuts and put the country on a path to reduce greenhouse gases by 40% below 2005 levels by 2030. The bill uses tax credits and other financial incentives aimed at making clean energy options more accessible for consumers, with a particular focus on those who are lower- to middle-income. Those benefits include increasing the affordability of heat pumps and other home infrastructure that revolves around electric power. Additionally, the legislation includes policies to support energy reliability and investment in clean energy manufacturing as well as investments to decarbonize all sectors of the economy through targeted federal support of innovative climate solutions.